Electronic Disbursements – Direct Deposit and Debit Cards
Iowa’s Presentation
Terri Pollard Program Planner tpollar@dhs.state.ia.us
Topics of Discussion
Reviewing your disbursement structure
How do you currently disburse payments
Outreach and offering options
Using both direct deposit and debit cards
Possible system enhancements
Supporting electronic disbursement
Initial case selections
The biggest impact in the shortest time
On-going issues
Loss of location, adding new cases, updating case information, closing cases
Reviewing your disbursement structure
How many payments have you sent out Payments sent out per case in last three, six, nine, and twelve months Current business practices Incarcerated custodial parents, international custodial parents, private enforcement agencies, payment errors
Outreach and Offering Options
Direct Deposit
Initial mailings offering direct deposit and information on additional electronic payment options
Send custodial parent a notice they are eligible for debit card and offer exemption if allowed Send a reminder notice prior to receipt of card
Debit Cards
Possible System Enhancements
Recording financial institution information
A specific record or other area of your system to record bank information including routing number, account number, electronic payment type (checking , savings, debit card), start date, end date, and possibly a unique identifier Daily allocation and disbursement process to use the financial information instead of creating checks/warrants Follow NACHA approved format to create the outgoing file. Work closely with disbursing state agency or your own financial institution.
Cash process
Outgoing EFT files
Initial Case Selections
Cases without other electronic payment options
Case is not already using direct deposit
Cases without exemptions or exceptions
Allowable exceptions disabilities, location, literacy, language Unique exceptions low payment level or low balance amount
On-Going Issues
Loss of location
Less incentive for custodial parent to keep address current Parents switching back and forth
Switching from debit card to direct deposit Updating case information
Keeping names, addresses, demographic data in synch When do you initiate the debit card process Proper notification
Dealing with new cases
Closing cases
Administrative Rule Authority
97.6(5) Warrants. The collection services center may authorize generation of a warrant if any one of the following conditions applies: a. Generation of a warrant is necessary to meet federal requirements to disburse a payment to an obligee within two working days when electronic transfer is not feasible. b. The obligee has not requested automatic deposit to a designated account of the obligee, and payment is from a source that is nonrecurring or is not expected to continue in a 12-month period. c. The obligee has not requested automatic deposit to a designated account of the obligee and has asserted in writing on Form 470-3972, Electronic Support Payments, that one of the exemptions listed in this paragraph applies. To claim an exemption, the obligee must return Form 470-3972 to the collection services center within ten days of the date the form was issued. An exemption granted under this paragraph is subject to periodic review by the collection services center. When the collection services center reviews an exemption, it shall issue Form 470-3973, Review of Electronic Transfer Exemption, to the obligee for completion. The exemptions available under this paragraph are: (1) A physical disability imposes a hardship in accessing an electronically transferred payment. (2) A mental disability imposes a hardship in accessing an electronically transferred payment. (3) A language barrier imposes a hardship in accessing an electronically transferred payment. (4) A literacy barrier imposes a hardship in accessing an electronically transferred payment. (5) The obligee’s home and work addresses are more than 30 miles from an automated teller machine and more than 30 miles from a financial institution where the account funds can be accessed. d. The representative payee, court appointee, or trustee notifies the collection services center or unit in writing that one of the following applies: (1) The obligee is under a court-ordered guardianship or conservatorship. (2) The obligee is involved in other legal proceedings, including bankruptcy, which require payments to be sent to a trustee or other representative payee.
Initial Notice (First Page)
Initial Notice (Page 2)
Initial Notice (Page 3)
Initial Notice (Page 4)
Reminder Notice
PAYEEEFT Screen
D479HR13 IOWA COLLECTION AND REPORTING SYSTEM PAYEE EFT AUTHORIZATION DATE: 09/05/06 TIME: 07:46:14 CASE NUMBER.....: PAYEE...........: PAYOR...........: BANK NUMBER.....: ACCOUNT NUMBER..: ACCOUNT TYPE....: START DATE......: STOP DATE.......: GENERATE NOTICE.: REQUIRE NOTICE..: PRENOTIFICATION.: PAYEE'S ID NUMBER..:
00 00 Y N
00 00
0000 0000
BANK NAME: ADDRESS..: EAC/DD NOTICE: REQUEST DATE.: ISSUE DATE...: EXEMPTION....: EAC ID.......:
00 00 0000 00 00 0000 00 00 0000 LOW 00 00 0000 0000000000
PF2=ADD, PF3=MODIFY, PF4=DELETE EFT, PF5=INQUIRE, PF6= HISTORY PF7=PAGE BACKWARD, PF8=PAGE FORWARD, PF9=REFRESH, PF22=NEW NEXT SCREEN: NOTES: PAYEE EFT NOT FOUND, ENTER INFORMATION AND USE PF2 TO ADD